My name is Christian Dillstrom and I am an international growth hacker with over 10 years of experience. Also, I am the most read business article author in the World for the fourth year running.
In addition, I serve my client US Southeast Region Collaborative as a Global Growth Ambassador.
As I am honored to serve this great region, it is my pleasure to publish content about US Southeast Region for my tens of millions of monthly global business readers.
-- Christian Dillstrom
---
The new federal qualified opportunity zone (QOZ) tax credits are expected to unleash up to $6 trillion in capital investment in more than 8,700 economically distressed areas in the U.S.
The U.S. Treasury
Department has designated 8,764 opportunity zones (known as Qualified
Opportunity Zones, or QOZs) in all 50 states, the District of Columbia
and five U.S. territories.
Nearly 35 million Americans live in areas
designated as Opportunity Zones. These communities present both the need
for investment and significant investment opportunities.
Based
on data from the 2011-2015 American Community Survey, the designated
regions had an average poverty rate of over 32 percent, compared with
the 17 percent national average.
Additionally, the median family income
of the designated tracts were on average 37 percent below the area or
state median, and had an unemployment rate of nearly 1.6 times higher
than the national average.
“We anticipate that $100
billion in private capital will be dedicated towards creating jobs and
economic development in Opportunity Zones,” said U.S. Treasury Secretary
Steven T. Mnuchin.
“This incentive will foster economic revitalization
and promote sustainable economic growth, which was a major goal of the
Tax Cuts and Jobs Act.”
The Treasury Dept. issued its
first set of IRS regulations last October, clarifying which gains
qualify for deferral, which taxpayers and investments are eligible, the
parameters for Opportunity Funds and other guidance; a second traunch of
IRS rules for QOZs was issued in April.
The
Opportunity Zone incentive offers capital gains tax relief to investors
for new investment in designated areas.
Investment benefits include
deferral of tax on prior gains as late as 2026 if the amount of the gain
is invested in an Opportunity Fund (QOF). The benefits also include tax
forgiveness on gains on that investment if the investor holds the
investment for at least 10 years.
Opportunity Zones retain their
designation for 10 years, but under the proposed regulations, investors
can hold onto their investments in Qualified Opportunity Funds through
2047 without losing tax benefits.
Treasury’s QOZ
designations were based on nominations of eligible census tracts by the
state governors. Each state nominated the maximum number of eligible
tracts, per statute, and these designations are final.
The statute and
legislative history of the Opportunity Zone designations, under IRC §
1400Z, do not contemplate an opportunity for additional or revised
designations after the maximum number of zones allowable have been
designated in a state or territory.
Based on IRC
1400Z-1, designations are based upon the boundaries of the tract at the
time of the designation in 2018, and do not change over the period of
the designation, even if the boundaries of an individual census tract
are redefined in future Census releases.
According to a
report from Real Capital Analytics, there is more than $6 trillion in
unrealized capital gains eligible to be deployed into QOZs.
Several
states have enacted enhanced tax credits to amplify the impact of the
federal QOZ program.
For example, legislation recently introduced in the
Michigan State Senate would create a tax credit for qualified research
and development expenses related to the automotive industry in QOZs.
S.B. 378 would allow a credit for a percentage of the difference between
the taxpayer’s R&D expenses in a QOZ and expenses in a QOZ during
the three-year base period, with a formula to determine the credit if
the taxpayer didn’t incur qualified R&D expenses in the base period.
TOPEKA, KS HAS THREE OPPORTUNITY ZONES
The
wonder of OZ can be found in Kansas when stepping into Topeka.
With
growing vibrancy and a palpable energy toward progress, a trip to Topeka
is a trip to an emerald world of endless investment possibilities,
thanks, in part, to the three new opportunity zones established here.
While
other rural counties and particularly blighted city areas were also
granted opportunity zones, Topeka’s are situated in a dynamic core of
resurgence.
From the residential-commercial downtown to the riverfront
green space to the growing NOTO arts district and the well-established
industrial district, Topeka’s dynamic core is steadily becoming a huge
asset to Topeka.
This variety and rejuvenation isn’t seen in other
opportunity zones.
Topeka’s downtown is a mixed-use
development of commercial, retail and residential.
Over the last few
years, it has seen tremendous growth with the additions of new
restaurants, breweries, shops and a boutique hotel. There will also be a
plaza opening in the spring that gives new space for concerts and
events, while also adding to the beauty and livability of the area.
These advances have helped the downtown hit a stride as one of the best
spots in Topeka not only to live, but also to invest. Similar growth is
happening in NOTO and the riverfront.
Local boutiques, restaurants and
arts centers are reshaping the area and turning NOTO into a hub for
artistic-minded individuals. In addition, parks and green spaces are
beginning to pop up throughout the area, helping bring even more people
to NOTO.
These areas may be going through a resurgence,
but that doesn’t mean they aren’t still capable of massive growth.
According to a recent study by Development Strategies, just within its
dynamic core, Topeka can support 690,000 more square feet of retail,
300,000 more square feet of new or rehabbed office space, 900 new or
rehabbed housing units and 200 new hotel rooms.
The city has a market
and a need for business and Topeka is invested in bringing it here.
There
is a reason why corporations, including Frito-Lay, Mars Chocolate,
Goodyear Tire & Rubber, Home Depot, Target and many more have chosen
Topeka as their home. The city is situated in the middle of the U.S.
with an infrastructure built for business.
Moreover, Topeka’s three
opportunity zones are all situated within a few minutes of interstate
highways and class I rail systems.
Within one day, goods shipped by
truck reach 25 percent of the U.S. population and 90 percent by day two.
The cost of living in Topeka is 7.4 percent lower than the U.S. average
and the cost of business is 15 percent less than the average as of
2018.
Topeka has the workforce to support growing
companies.
Within 60 miles of Topeka, there are three universities—the
University of Kansas, Kansas State University and Washburn University,
along with a technical school, Washburn Institute of
Technology—producing over 13,500 highly educated students graduating
annually.
Washburn Tech also works closely with businesses and
industries in Topeka and Shawnee County to ensure that students are
learning practical skills that lead to great jobs available in the
community.
If having the culture, people, business assets and
infrastructure isn’t enough, stack on the aggressive local incentives.
Topeka offers cash grants for jobs, investments and training.
Topeka
is special because its opportunity zones are just that: opportunities.
The city has a dynamic core that is growing, but ready to take on
further investment.
There is a need for business and a market to support
it. While other OZs may be risky, Topeka’s continued revitalization,
market capability, aggressive incentives and growing workforce makes it
easy to call the land of OZ “home.”
A QOZ IN HISTORIC MIDDLETOWN, CT
The
City of Middletown makes it easy for investors who want to build
quality developments.
It understands time is your money and therefore
made its land use processes swift, certain and smart.
City staff works
with investors from conception to completion and beyond to ensure your
project meets all of the City’s requirements, making it easy for you to
complete your projects on your time and within your budget.
Middletown
has a dedicated partner located downtown, the Middlesex County Chamber
of Commerce and its 2,500+ members. It is by far the largest Chamber in
Connecticut and the 2nd largest in New England.
The City and Chamber are
partners on all things economic development. They work together to
ensure your project is successful by helping you through the approval
process, promoting it once it is done and helping you recruit tenants.
Middletown
invites you to look into its Opportunity Zone, which is strategically
placed in the center of its historic downtown. The City owns a
ready-to-develop site which overlooks the scenic Connecticut River.
It
comprises two City-owned lots which, taken together, total approximately
2.3 acres. In addition, there is an adjacent private one-acre lot. It
is easily walkable to more than 60 restaurants and dozens of retailers
and entertainment venues.
The City site currently is a
parking lot for both City employees and the public. It is a short walk
(500 feet) to the heart of Main Street. An automobile business, which is
constrained by its site, owns the private property.
The
three lots total approximately 3.3 acres. City staff will arrange all
meetings with City leaders and the private property owner to discuss
your Opportunity Zone project.
This site is in the
City’s B1 Downtown Zone which allows, by right, the traditional downtown
uses, including retail, residential, entertainment and office. The
regulation allows mixed use. The B1 Zone is its most broadly-based zone.
There
are fabulous views, in both directions, of the scenic Connecticut River
from this site.
Plus, the Connecticut Department of Transportation has a
plan to connect this site to the City’s Harbor Park via a walking
bridge over Connecticut Route 9. It will connect to an existing City
walkway to Main Street. So the site will be connected to both Main
Street and Harbor Park.
The City has completed the
environmental studies and, as public documents, will share them with
prospective developers. They show minimal contamination.
They also have
numerous studies, including one for expanding Harbor Park along the
river for a mile, a downtown residential study and a market analysis.
There
are three major downtown employers which could provide any investor an
ample source of residential tenants.
Wesleyan University with its 2,950
students and 650 staff; Middlesex Health with 3,000 staff; and the
Community Health Center and its 300+ plus staff are all less than a
half-mile, a ten-minute walk, from the site.
Staff will arrange meetings
with these and other businesses to assist you in marketing your
Opportunity Zone project.
Middletown and its economic
development partners will help you all the way through the process from
conception, to approval and beyond construction.
These
Opportunity Zone sites, taken together, are ready for the right
developer who understands a small, vibrant City like Middletown.
The
City is home to four major industry clusters. Pratt & Whitney (PW)
anchors the aerospace cluster. It assembles jet engines for both
commercial and military purposes in its 400,000+square-foot plant.
PW is
supported by more than 20 sub-contractors in town. Together PW and its
contractors support more than 3,000 aerospace jobs.
Both
Middlesex Health and the Community Health Center anchor the City’s
health sector along with other health services providers.
Middletown’s
distribution and logistics cluster features newcomer FedEx (535,000
square feet), Electrical Wholesalers, Thames River Paper and Winsupply,
among others.
The City’s strategic location on I-91 and one-day drive to
Ohio, Virginia and Canada makes the region attractive to logistics
companies.
The City’s central location also has
attracted more than a dozen engineering firms. These firms, along with
PW and its contractors, have made Middletown a mecca for engineers.
Entrepreneurs,
start-ups and early-stage businesses now have a home in the Chamber’s
Middletown Entrepreneurs Work Space (MEWS+). It is a place for them to
co-work, learn from each other and take advantage of the Chamber’s
wrap-around services.
The MEWS+’s “Lunch and Learn” programs and monthly
pitch contest, “Collision”, continue to bring entrepreneurs from around
the region to Middletown. The City is home to more than 300 businesses
being operated out of the homes.
Middletown, its economic development partners and business community welcome new investors and businesses.
PARSONS, KS OPPORTUNITY ZONE COVERS MAJOR MARKETS
Located
in the four states region of Kansas, Missouri, Oklahoma and Arkansas,
the Parsons Kansas Federal Opportunity Zone, officially registered as
zone #20099950400, is a short distance from major markets such as
Joplin, MO (60 miles); Tulsa, OK (90 miles); Springfield, MO (120
miles); Wichita, KS (130 miles); and Kansas City, MO (150 miles).
It
also is 90 miles from Tulsa’s Port of Catoosa and 130 miles from the
intermodal facility at Kansas City’s Logistics Park.
The
central location creates easy solutions to logistical challenges and is
second to only the commitment of the local economic development
department to be a true partner with any project that is located in the
zone.
Tax incentives through neighborhood revitalization programs that
offer 100 percent for ten years to qualified commercial development also
are a part of the attractiveness of this Southeast Kansas location.
An
active industrial park currently sits within City limits and within the
Zone offering pre-designated commercial and industry opportunities,
available buildings and full utilities, including high speed data.
The
Zone also sits Adjacent to the Great Plains Industrial Park, a former
Army ammunition plant recently decommissioned that now provides more
than 6,000 acres ready for development along with a 24/7 secured
perimeter and specialized storage and warehousing space.
Situated
in Labette County, just outside of the city limits of Parsons in
Southeast Kansas, Great Plains offers globally competitive opportunities
for your business.
Its central location in the U.S. and on-site assets
at the park allow for ease of access to all major markets.
The
acreage that comprises the industrial park was originally amassed to
form the Kansas Army Ammunition Plant (KSAAP) during WWII. Today, the
park encompasses 13,951 total acres.
Of this total acreage,
approximately 6,800 acres are owned by Great Plains Development
Authority and are ripe for redevelopment.
With the availability to break
the property into various tract sizes, Great Plains can accommodate the
needs of your business.
The industrial park’s existing infrastructure
includes:
- 106 miles of roadways
- 30 miles of rail directly connected to the Union Pacific (including an in-place switch off of the main line)
- Water and wastewater plants owned and operated by Great Plains
- Kansas’ lowest electric rates through Westar Energy
- On-site AT&T fiber optics
Industries
such as industrial hemp and alternative energy generation already are
being researched for potential location within the Zone while workforce
needs are being directly addressed by Labette Community College, located
in Parsons, through their new workforce training and education program.
The program features a brand-new facility, with course and certificate
curriculum created through direct input from local industry.
The city
also serves as the area’s medical center with the 600 employee Labette
Health located within the zone as well, offering additional commercial
development opportunities.
CITY OF SANFORD: ECONOMIC DRIVER IN CENTRAL FLORIDA
The
City of Sanford, FL has become an economic driver for the Central
Florida region. The last four years have been one of the biggest growth
cycles in Sanford history.
New development is being proposed in Sanford
that will create hundreds of new jobs, additional housing and a variety
of new restaurants.
New life continues
to be breathed into the City of Sanford, especially in the downtown
area. From West First Street down to Mellonville Avenue and from South
Sanford Avenue to the Marina Isle, there is new development taking
place.
The area surrounding Seminole Town Center is still seeing
economic activity. From Seminole Boulevard down to Seminole State
College one can see plenty of new infill development. Hundreds of new
jobs are being created.
Heritage Park, Sanford’s
planned mixed-use development for downtown is still being planned. The
City currently is planning all the infrastructure for the project.
Construction should begin very soon.
This time next year, we should see
new vertical construction for new residential units downtown. Many
construction jobs will be created over the next several years during the
construction of this major catalyst project.
The
rehabilitation of the old Mayfair Hotel is still on track to open by the
fall of 2020. Final plans currently are being designed.
Over a hundred
new full time jobs will be created to operate the new Five Star
facility, not to mention the additional construction jobs being created
over the next two years.
Sanford currently is
experiencing major economic growth in the hospitality sector. Several
new craft breweries have opened this past year and are doing very well.
There are a couple more currently being planned, plus a distillery on
Second Street. Two new mixed-use developments currently are being
planned for Sanford Avenue, with another major mixed-use development
sited for the block on Second Avenue between Oak St. and Myrtle St.
The
third phase of the Riverwalk will soon be designed and construction
will begin for the completion of the trail from the 415 bridge to the
I-4 bridge over the St. Johns River by the fall of 2020.
A full marathon
is being planned in partnership with Deltona/Volusia County around Lake
Monroe upon the completion of the 25+ mile trail.
As
part of Sanford’s economic development strategic plan, the City has
identified four major targeted industries: aviation/aerospace, medical
technology, transportation/logistics and manufacturing.
The City works
hard in recruiting new companies and in the retention and expansion of
its existing companies.
The City has assisted in the creation of over
300 new high wage, high value jobs over the last year. Several of these
companies include: Hernon Manufacturing, Constant Aviation, Quantum Flo,
Benada Aluminum, Allegiant Airlines and Avocet.
The City will continue
to work in partnership with Enterprise Florida, the Orlando Economic
Development Partnership and Seminole County to provide incentives to
assist in the creation of new employment opportunities.
Along
with great community and regional partnerships, the City of Sanford
really is becoming a more economically vibrant community. Perceptions
are becoming a reality.
from BusinessFacilities.com